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Local Governance

• Local governance is a complex subject with various interpretations depending on the context.
• It involves the interplay of state and society.
• Decentralization is a key aspect, involving the transfer of some state responsibilities to local entities.
• The concept gained prominence in the 1970s due to various global economic and political crises.
• The role of the state changed in response to these crises.

Historical Context of Local Governance

• The 1929 economic crisis and subsequent developments impacted the global economic system.
• The idea of a self-regulating market (invisible hand) proposed by Adam Smith was challenged by Keynes's emphasis on state intervention.
• Post-World War II, the concept of the welfare state gained prominence.
• The 1970s crisis, including the two oil crises, further shifted perspectives on state involvement in the economy.
• Privatization and a focus on local action became prominent.
• The debate about the role of the state in solving problems emerged.
• The idea of a "new world order" with less state involvement was introduced. The role of global markets and multinational corporations became increasingly significant, potentially challenging state sovereignty.
• Hafermas highlighted how globalized markets undermine traditional state functions.
• The relationship between state, economy, and society underwent critical revisions.

Theoretical Perspectives on Local Governance

• Max Weber’s focus on understanding social systems' functioning was noted.
• Alain Touraine emphasized the role of sociology in empowering communities and promoting social change.
• Criticism of Touraine's views included his approach towards traditional theorists like Foucault and Bourdieu.
• Touraine asserted that academics should actively contribute to societal progression.

Neoliberal Paradigm and Global Governance

• Neoliberal tenets often prioritize profit maximization, unfettered competition, globalization of trade, and the marginalization of local cultures.
• Global institutions like the World Trade Organization and the World Bank are central to this new paradigm.
• These institutions wield influence exceeding their state-level structures and mandates.
• The notion of "global governance without a state" has gained notice.
• The EU and the USA are major players in these institutions. However, non-transparent, powerful committees play crucial roles in defining policies at these institutions.
• Decisions and policies are heavily influenced by multinational corporations.
• The concept of "national treatment" in international trade erodes state sovereignty.

Critique of Global Governance

• Critics argue that globalized markets weaken state regulatory capabilities and restrict democratic processes.
• The erosion of national fiscal autonomy and economic control is a common concern.
• International financial institutions exert decisive influence on national economic policies.
• There are significant social costs stemming from the limitations of state interventions, including rising unemployment and widening inequality.

Latin America Cases (especially Brazil)

• Some countries attempted to implement more equitable economic and social models.
• However, these actions were often subverted or challenged, often owing to institutional pressure and global market dynamics.
• Notable examples of these include the actions of some states (like Brazil) which led to a significant change in policy and management decisions.

Local Governance and the Rise of Non-Government Organizations (NGOs)

• NGOs play a significant role in implementing socio-economic programs.
• These institutions can act as agents of influence on state decisions and policies.

Local Governance, Participation, and Democracy

• Local governments are crucial spaces for democratization and citizen engagement in policymaking.
• The concept of participatory budgeting, as practiced in Porto Alegre, Brazil, is frequently discussed as a positive example. Citizen participation in local decision-making processes are crucial for local governance.
• Consultation versus participation and the idea of "community empowerment" should also be considered.